Skype clarifies Sainsbury's voucher tax

Skype is to change the way it promotes credit vouchers on sale in Sainsbury's supermarkets following customer confusion over VAT charges.

Since May, Skype customers have been able to buy credit for the internet telephone service, in the form of eVouchers, at 500 Sainsbury’s stores.

The eVoucher has a unique PIN code to enter when you log on to your Skype account page, and once activated it makes Skype credit immediately available to use.

Leaflets promoting the service are available in Sainsbury's stores, however the marketing material did not make it clear that customers would need to pay tax on the eVouchers.

Web User reader Dr Castilla bought a Sainsbury’s £10 Skype voucher but was baffled after this only credited £8.70 to his Skype account.

"I emailed Skype complaining of this as I feel this was unfair, as I had not been told of this surcharge. I checked the leaflet from Sainsbury's and there was no mention of this at all, I have checked the Skype website and again I could not find any explanations for this," said Dr Castilla.

"After using the credit up, I found on the Skype website a confirmation of the top-up and a note explaining that I had been charged 15 per cent VAT or £1.30."

A spokesman for Skype said: "Skype is required under applicable tax laws to charge VAT on purchases of SkypeOut credit to consumers within the EU, whether such credit is bought online or offline."

"Skype has been working with Sainsbury’s to make the terms and conditions clearer for consumers. New leaflets will be available in Sainsbury’s stores shortly."

www.skype.com